Town council reviews final budget, staff proposes $40,000 transfer from electric fund to cover shortfalls

The town council held a public hearing to review a revised final budget that staff said reflects updated revenues, new loan proceeds and several interfund adjustments.

Casey, the budget presenter, told the council she had revised the document so the "last two columns" show the original and revised budgets and that the revised budget would be the final budget unless the council made changes. "I lowered the sale of cemetery lots… I changed that to 1,500," Casey said, citing historical experience. She also said she had "bumped up" projected interest earnings because an additional payment is expected in 2026.

Casey proposed a transfer from the electric fund to the general fund to address shortfalls and to shore up the water fund. "I wanted to move about 40,000," she said, noting the electric fund balance was roughly $111,000 while the water fund was showing a deficit (described in discussion as about $30,000 negative). Council members asked questions about timing and whether planned loan proceeds would alter the need for transfers.

On project billing, a council member said Dixie agreed to apply a $100,000 credit against the town's bills for the project rather than returning funds and reissuing payments. The same council member noted a trenching contractor estimate of about $89,000 that rose in practice to approximately $137,000, producing additional costs the budget must reflect.

Casey moved some amounts from equipment supply and maintenance into a capital outlay account for highways and listed a roughly $45,000 administrative increase funded in part by the proposed transfer. She also reported a new USDA loan account and that the town had received $20,000 from USDA; she placed remaining expected proceeds into next year’s budget to reflect uncertain timing.

The presenter said she had adjusted salaries and benefits line items in several departments to match recent actuals and to avoid underestimating costs. On the electric side, she described higher winter power-purchase costs (discussed as monthly peaks near $15,000) and said she had increased appropriations accordingly.

During public comment a resident said the presentation "looks great" and asked whether the council would wait until the next meeting to vote on the final budget; council members confirmed the vote would be taken at the next scheduled meeting. No formal motion or vote occurred during the hearing.

The council asked staff to circulate the revised budget document and supporting details ahead of the next meeting so members could review the proposed transfers, contractor invoices, and timing of loan proceeds before the final vote.